When purchasing a new home in a city such as Winnipeg, there are all kinds of things that you need to consider. Budget is usually the top concern, but then you also need to give thought to the location, the layout of the home, whether or not it has enough room for you to grow into, the style of the home, etc. But what happens when you are looking at buying an investment rental property rather than a property you plan to live in?
While there should still be a list of considerations you are aware of when purchasing an investment rental property, they do differ.
What Are the Employment Opportunities Like?
Because your investment property needs to draw the interest of renters, it’s important to pick a city or town that has employment opportunities. It could be that the city is going through an expansion with new jobs being created, or it may just be known as a bustling hub of action. The more people that are being drawn to that location for a job, the more people that need a place to live. A good resource for current job trends and employment opportunities is Statistics Canada.
What Type of Renter Do You Want?
You will want to also spend some time thinking about the type of renter you want. Are you looking to appeal to a college or a university student, a young working person, a couple, or a family? This will help you figure out the best type of accommodation and the location.
Give Serious Thought to the Location
Just as location is important when you’re purchasing a property for yourself, it remains important when you are looking for a rental property. You want to think about things such as proximity to shopping centers, its walking score (can you walk to major amenities), proximity to schools, how close it is to the nearest hospital, whether there are any major business centers nearby, whether the location is up and coming or already established, the safety of the neighborhood, and whether it is in demand.
What Kind of Property Do You Want?
Investment properties come in all shapes and sizes, and this is something that needs to be considered. Are you looking to purchase a detached home large enough for a family, or are you checking out the various apartments for rent in Winnipeg and thinking that may be the better way to go? Obviously, the type of property you pick will affect your budget. It’s a good idea to do some research and figure out what is in demand from a renter’s perspective.
Make Sure You Think About the Return on Investment
Here’s another very important thing to consider and that’s the return on investment. Remember, an investment property is in fact a business decision. You aren’t the one living there so you don’t need to feel an emotional attachment. What you need to do is make sure you’re getting the best deal possible and that it is a property that will appreciate and bring you a large return on investment when the time comes that you want to sell it.
By keeping each of these considerations in mind, you will find buying an investment property to be much smoother and more lucrative in the end.